Mumbai: Seeking to stave off the Centre’s plan to privatise Thiruvananthapuram airport under its watch, the Communist Party of India (Marxist)-led Left Democratic Front (LDF) government in Kerala has applied on the tender through its Kerala State Industrial Development Corporation Ltd (KSIDC).
The Pinarayi Vijayan-led government has picked KSIDC to apply on the tender to get the benefit of the right of first refusal (RoFR) granted to state-owned entities in government auctions. It will also help the government pass the eligibility criteria set by the Airports Authority of India (AAI) for bidders by using the financial and technical muscle of a broad range of state-owned entities under its control, Kerala government officials told BusinessLine.
The state government has hired KPMG and Amarchand Mangaldas to help put in a bid for the airport in the state capital, the official said, asking not to be named.
The state government is in the process of forming a special purpose vehicle (SPV) - ‘Trivandrum International Airport Ltd’- to comply with the tender conditions. The SPV will be initially fully-owned by state government entities. “If successful in winning the tender, we will induct 1-2 strategic partners by diluting up to 49 per cent stake in the SPV,” the official said.
“Due to the extremely short timeline in submitting a bid, we are yet to identify the strategic partners which, in any case, is a time-consuming process,” the official added. The Kerala government initially told the Centre of its desire to take over and run the airport on nomination basis (without a tender).
16/02/19 P Manoj/Business Line
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The Pinarayi Vijayan-led government has picked KSIDC to apply on the tender to get the benefit of the right of first refusal (RoFR) granted to state-owned entities in government auctions. It will also help the government pass the eligibility criteria set by the Airports Authority of India (AAI) for bidders by using the financial and technical muscle of a broad range of state-owned entities under its control, Kerala government officials told BusinessLine.
The state government has hired KPMG and Amarchand Mangaldas to help put in a bid for the airport in the state capital, the official said, asking not to be named.
The state government is in the process of forming a special purpose vehicle (SPV) - ‘Trivandrum International Airport Ltd’- to comply with the tender conditions. The SPV will be initially fully-owned by state government entities. “If successful in winning the tender, we will induct 1-2 strategic partners by diluting up to 49 per cent stake in the SPV,” the official said.
“Due to the extremely short timeline in submitting a bid, we are yet to identify the strategic partners which, in any case, is a time-consuming process,” the official added. The Kerala government initially told the Centre of its desire to take over and run the airport on nomination basis (without a tender).
16/02/19 P Manoj/Business Line
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